Everyone is jumping into Cryptocurrency investing. After they get over the first few hurdles of setting up accounts and purchasing the coins and transferring them to secure wallets, they breathe a sigh of relief that now they can get on with life and wait a few years for the profits to roll in. This is a great start BUT you are missing out on a significant amount of opportunity to grow your portfolio faster.
I want to shake that idea slightly….
Take a look at this chart 1 hour price chart of Bitcoin.
Yesterday at 10am the price of Bitcoin dropped from a $5,000 high to close to $4,500 in a little over 20Hours of trading (-10%). This wasn’t a unique event. Take a look at Daily charts of all the top cryptos.
It was a similar story across the board.Yesterday was a major correction for these markets which have seen wild and exciting upward runs. For anybody invested in these digital markets it meant a 10% loss in value of their assets, it was a time to lock in profits and wait for a cheaper price to enter the market. Most investors would have seen it on twitter or received alerts such as these on their phone.
Not to worry…. the price will go back up again.
We captured 10% worth of additional value to grow our fund. For the brave among us, we play both sides, we put sell/short positions and make profits on the downtrend and then place a buy/ long position at the lower entry price so we can actually capture 20% from this 24 hour price volatility. Essentially doubling up on the opportunity.
At Cryptograph we are looking for these opportunities in the market. Our analytical indicators help us identify positions/price in the market where there is a likelihood of a change in trend. 2 days ago we saw signs of a price reduction as crypto markets were over bought and made the decision to close (take profit) from a number of our trades. We also recommended this to a number of other investors who contact us.
This next chart shows the performance of all of our fund contributors. You can see the chart is split into two parts. “Closed” – the % P&L that has actually been realised through closed positions (locked in profits). “P&L” this is total profit and loss which includes active trade positions. You can notice the Closed % across all of our investors shifted significantly before yesterdays main event. This is a real example of locking in profits before the dive.
This is just one example of how you can play the cryptocurrency markets. If you have any questions or want some advice, please don’t hesitate to use our contact form to get in touch.